Paramount Announces Fourth Quarter 2022 Results

Rhea-AI Summary

Paramount Group, Inc. (PGRE) reported its 2022 financial results, showing a net loss of $37.9 million, or $0.17 per diluted share, compared to net income of $1.2 million in Q4 2021. The loss includes a $29.6 million real estate impairment from a joint venture. Core FFO rose to $54.4 million, or $0.25 per diluted share, up from $52.8 million or $0.24 per diluted share in Q4 2021. For the year, net loss was $36.4 million, while FFO was $210.1 million, or $0.95 per diluted share. The company expects 2023 Core FFO guidance between $0.88 and $0.94 per share, influenced by anticipated lease expirations and increased debt costs.

Positive

• Core FFO for Q4 2022 increased to $54.4 million, up from $52.8 million in Q4 2021.
• Full-year FFO for 2022 rose to $210.1 million, compared to $192.5 million in 2021.

Negative

• Q4 2022 net loss of $37.9 million compared to net income of $1.2 million in Q4 2021.
• Same Store Cash NOI decreased by 2.6% in Q4 2022.
• Expectations of a Core FFO decrease due to major lease expirations and rising interest expenses.

– Completes $65 million of share repurchases in 2022 –

– Initiates Guidance for Full Year 2023 –

NEW YORK--(BUSINESS WIRE)-- Paramount Group, Inc. (NYSE: PGRE) (“Paramount” or the “Company”) filed its Annual Report on Form 10-K for the year ended December 31, 2022 today and reported results for the fourth quarter ended December 31, 2022.

Fourth Quarter Highlights:

Results of Operations:

• Reported net loss attributable to common stockholders of $37.9 million, or $0.17 per diluted share, for the quarter ended December 31, 2022, compared to net income attributable to common stockholders of $1.2 million, or $0.01 per diluted share, for the quarter ended December 31, 2021. Net loss attributable to common stockholders for the quarter ended December 31, 2022 includes $29.6 million for our share of a real estate impairment loss of an unconsolidated joint venture.
• Reported Core Funds from Operations (“Core FFO”) attributable to common stockholders of $54.4 million, or $0.25 per diluted share, for the quarter ended December 31, 2022, compared to $52.8 million, or $0.24 per diluted share, for the quarter ended December 31, 2021.
• Reported a 2.6% decrease in Same Store Cash Net Operating Income (“NOI”) and a 3.8% increase in Same Store NOI in the quarter ended December 31, 2022, compared to the same period in the prior year.
• Leased 205,530 square feet, of which the Company’s share was 131,742 square feet that was leased at a weighted average initial rent of $77.66 per square foot. Of the 205,530 square feet leased, 116,142 square feet represented the Company’s share of second generation space, for which mark-to-markets were negative 0.7% on a cash basis and positive 2.3% on a GAAP basis.

Capital Markets Activity:

• Repurchased 10,370,610 common shares at a weighted average price of $6.27 per share, or $65.0 million in the aggregate in the year ended December 31, 2022, of which 7,133,218 shares were repurchased in the fourth quarter, at a weighted average price of $6.12 per share, or $43.7 million in the aggregate.
• Declared a fourth quarter cash dividend of $0.0775 per common share on December 15, 2022, which was paid on January 13, 2023.

Financial Results

Quarter Ended December 31, 2022

Net loss attributable to common stockholders was $37.9 million, or $0.17 per diluted share, for the quarter ended December 31, 2022, compared to net income attributable to common stockholders of $1.2 million, or $0.01 per diluted share, for the quarter ended December 31, 2021. Net loss attributable to common stockholders for the quarter ended December 31, 2022 includes $29.6 million for our share of a real estate impairment loss of an unconsolidated joint venture.

Funds from Operations (“FFO”) attributable to common stockholders was $48.5 million, or $0.22 per diluted share, for the quarter ended December 31, 2022, compared to $53.4 million, or $0.24 per diluted share, for the quarter ended December 31, 2021. FFO attributable to common stockholders for the quarters ended December 31, 2022 and 2021 includes the impact of certain non-core items, which are listed in the table on page 9. The aggregate of the non-core items, net of amounts attributable to noncontrolling interests, decreased FFO attributable to common stockholders for the quarter ended December 31, 2022 by $5.9 million, or $0.03 per diluted share and increased FFO attributable to common stockholders for the quarter ended December 31, 2021 by $0.6 million, or $0.00 per diluted share.

Core FFO attributable to common stockholders, which excludes the impact of the non-core items listed on page 9, was $54.4 million, or $0.25 per diluted share, for the quarter ended December 31, 2022, compared to $52.8 million, or $0.24 per diluted share, for the quarter ended December 31, 2021.

Year Ended December 31, 2022

Net loss attributable to common stockholders was $36.4 million, or $0.16 per diluted share, for the year ended December 31, 2022, compared to $20.4 million, or $0.09 per diluted share, for the year ended December 31, 2021. Net loss attributable to common stockholders for the year ended December 31, 2022 includes $29.6 million for our share of a real estate impairment loss of an unconsolidated joint venture. Net loss attributable to common stockholders for the year ended December 31, 2021 includes a $10.7 million contribution to an unconsolidated joint venture that was expensed in accordance with GAAP.

FFO attributable to common stockholders was $210.1 million, or $0.95 per diluted share, for the year ended December 31, 2022, compared to $192.5 million, or $0.88 per diluted share, for the year ended December 31, 2021. FFO attributable to common stockholders for the year ended December 31, 2021 includes a $10.7 million contribution to an unconsolidated joint venture that was expensed in accordance with GAAP. FFO attributable to common stockholders for the years ended December 31, 2022 and 2021 also includes the impact of other non-core items, which are listed in the table on page 9. The aggregate of the non-core items, net of amounts attributable to noncontrolling interests decreased FFO attributable to common stockholders for the years ended December 31, 2022 and 2021 by $6.7 million and $8.6 million, respectively, or $0.03 and $0.04 per diluted share, respectively.

Core FFO attributable to common stockholders, which excludes the impact of the non-core items listed on page 9, was $216.8 million, or $0.98 per diluted share, for the year ended December 31, 2022, compared to $201.1 million, or $0.92 per diluted share, for the year ended December 31, 2021.

Portfolio Operations

Quarter Ended December 31, 2022

Same Store Cash NOI decreased by $2.5 million, or 2.6%, to $96.6 million for the quarter ended December 31, 2022 from $99.1 million for the quarter ended December 31, 2021. Same Store NOI increased by $3.7 million, or 3.8%, to $101.2 million for the quarter ended December 31, 2022 from $97.5 million for the quarter ended December 31, 2021.

During the quarter ended December 31, 2022, the Company leased 205,530 square feet, of which the Company’s share was 131,742 square feet that was leased at a weighted average initial rent of $77.66 per square foot. This leasing activity, offset by lease expirations in the quarter, decreased leased occupancy and same store leased occupancy (properties owned by the Company in a similar manner during both reporting periods) by 10 basis points to 91.3% at December 31, 2022 from 91.4% at September 30, 2022. Of the 205,530 square feet leased, 116,142 square feet represented the Company’s share of second generation space (space leased that (i) has been vacant for less than twelve months or (ii) has been pre-leased prior to expiration) for which mark-to-markets were negative 0.7% on a cash basis and positive 2.3% on a GAAP basis. The weighted average lease term for leases signed during the fourth quarter was 3.8 years and weighted average tenant improvements and leasing commissions on these leases were $10.81 per square foot per annum, or 13.9% of initial rent.

Year Ended December 31, 2022

Same Store Cash NOI increased by $6.5 million, or 1.7%, to $386.1 million for the year ended December 31, 2022 from $379.6 million for the year ended December 31, 2021. Same Store NOI increased by $15.7 million, or 4.0%, to $402.4 million for the year ended December 31, 2022 from $386.7 million for the year ended December 31, 2021.

During the year ended December 31, 2022, the Company leased 947,135 square feet, of which the Company’s share was 688,041 square feet that was leased at a weighted average initial rent of $77.22 per square foot. This leasing activity, partially offset by lease expirations during the year, increased leased occupancy by 60 basis points to 91.3% at December 31, 2022 from 90.7% at December 31, 2021. Same store leased occupancy increased by 70 basis points to 91.3% at December 31, 2022 from 90.6% at December 31, 2021. Of the 947,135 square feet leased, 557,641 square feet represented the Company’s share of second generation space for which mark-to-markets were negative 5.4% on a cash basis and positive 1.5% on a GAAP basis. The weighted average lease term for leases signed during the year was 8.8 years and weighted average tenant improvements and leasing commissions on these leases were $10.72 per square foot per annum, or 13.9% of initial rent.

Guidance

The Company is providing its Estimated Core FFO Guidance for the full year of 2023, which is reconciled below to estimated net loss attributable to common stockholders per diluted share in accordance with GAAP. The Company estimates that net loss attributable to common stockholders will be between $0.13 and $0.07 per diluted share. The estimated net loss attributable to common stockholders per diluted share is not a projection and is being provided solely to satisfy the disclosure requirements of the U.S. Securities and Exchange Commission.

The Company estimates that 2023 Core FFO will be between $0.88 and $0.94 per diluted share. The estimated Core FFO of $0.91 per diluted share, at the midpoint of the Company's guidance for 2023, when compared to actual Core FFO of $0.98 per diluted share for 2022, assumes among other items, decreases and increases in the Company’s share of the following components: (i) a decrease in Same Store Cash NOI of 5.5% to 3.5%, or $0.08 per diluted share (resulting primarily from two of the Company’s largest tenants’ leases expiring during 2023), (ii) a decrease in lease termination income of $0.01 per diluted share, and (iii) an increase in interest and debt expense of $0.05 per diluted share, partially offset by, (iv) an increase in non-cash straight-line rent and amortization of above and below-market lease revenue, net of $0.04 per diluted share and (v) a $0.03 per diluted share benefit due to a lower number of weighted average common shares and units outstanding in 2023, resulting from the 10.4 million common shares that were repurchased during 2022.

	Full Year 2023
(Amounts per diluted share)	Low				High
Estimated net loss attributable to common stockholders	$	(0.13	)		$	(0.07	)
Pro rata share of real estate depreciation and amortization, including the Company's share of unconsolidated joint ventures		1.01				1.01
Estimated Core FFO	$	0.88			$	0.94

Except as described above, these estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels and the earnings impact of the events referenced in this release and otherwise to be referenced during the conference call referred to on page 6. These estimates do not include the impact on operating results from possible future property acquisitions or dispositions, or realized and unrealized gains and losses on real estate related fund investments. The estimates set forth above may be subject to fluctuations as a result of several factors, including the negative impact of the COVID-19 global pandemic. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth above.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. You can identify these statements by our use of the words “assumes,” “believes,” “estimates,” “expects,” “guidance,” “intends,” “plans,” “projects” and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company’s control and could materially affect actual results, performance or achievements. These factors include, without limitation, the negative impact of the COVID-19 global pandemic or any future pandemic, endemic or outbreak of infectious disease on the U.S., regional and global economies and our tenants’ financial condition and results of operations; the ability to enter into new leases or renew leases on favorable terms; dependence on tenants’ financial condition; trends in the office real estate industry including telecommuting, flexible work schedules, open workplaces and teleconferencing; the uncertainties of real estate development, acquisition and disposition activity; the ability to effectively integrate acquisitions; fluctuations in interest rates and the costs and availability of financing; the ability of our joint venture partners to satisfy their obligations; the effects of local, national and international economic and market conditions and the impact of rising inflation and interest rates on such market conditions; the effects of acquisitions, dispositions and possible impairment charges on our operating results; regulatory changes, including changes to tax laws and regulations; and other risks and uncertainties detailed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission. The Company does not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

FFO is a supplemental measure of our performance. We present FFO in accordance with the definition adopted by the National Association of Real Estate Investment Trusts (“Nareit”). Nareit defines FFO as net income or loss, calculated in accordance with GAAP, adjusted to exclude depreciation and amortization from real estate assets, impairment losses on certain real estate assets and gains or losses from the sale of certain real estate assets or from change in control of certain real estate assets, including our share of such adjustments of unconsolidated joint ventures. FFO is commonly used in the real estate industry to assist investors and analysts in comparing results of real estate companies because it excludes the effect of real estate depreciation and amortization and net gains on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. In addition, we present Core FFO as an alternative measure of our operating performance, which adjusts FFO for certain other items that we believe enhance the comparability of our FFO across periods. Core FFO, when applicable, excludes the impact of certain items, including, transaction related costs and adjustments, realized and unrealized gains or losses on real estate related fund investments, unrealized gains or losses on interest rate swaps, severance costs and gains or losses on early extinguishment of debt, in order to reflect the Core FFO of our real estate portfolio and operations. In future periods, we may also exclude other items from Core FFO that we believe may help investors compare our results.

FFO and Core FFO are presented as supplemental financial measures and do not fully represent our operating performance. Other REITs may use different methodologies for calculating FFO and Core FFO or use other definitions of FFO and Core FFO and, accordingly, our presentation of these measures may not be comparable to other real estate companies. Neither FFO nor Core FFO is intended to be a measure of cash flow or liquidity. Please refer to our financial statements, prepared in accordance with GAAP, for purposes of evaluating our financial condition, results of operations and cash flows.

NOI is used to measure the operating performance of our properties. NOI consists of rental revenue (which includes property rentals, tenant reimbursements and lease termination income) and certain other property-related revenue less operating expenses (which includes property-related expenses such as cleaning, security, repairs and maintenance, utilities, property administration and real estate taxes). We also present Cash NOI which deducts from NOI, straight-line rent adjustments and the amortization of above and below-market leases, including our share of such adjustments of unconsolidated joint ventures. In addition, we present PGRE's share of NOI and Cash NOI which represents our share of NOI and Cash NOI of consolidated and unconsolidated joint ventures, based on our percentage ownership in the underlying assets. We use NOI and Cash NOI internally as performance measures and believe they provide useful information to investors regarding our financial condition and results of operations because they reflect only those income and expense items that are incurred at property level.

Same Store NOI is used to measure the operating performance of properties in our New York and San Francisco portfolios that were owned by the Company in a similar manner during both the current period and prior reporting periods and represents Same Store NOI from consolidated and unconsolidated joint ventures based on our percentage ownership in the underlying assets. Same Store NOI also excludes lease termination income, impairment of receivables arising from operating leases and certain other items that may vary from period to period. We also present Same Store Cash NOI, which excludes the effect of non-cash items such as the straight-line rent adjustments and the amortization of above and below-market leases.

A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in this press release and in our Supplemental Information for the quarter ended December 31, 2022, which is available on our website.

Investor Conference Call and Webcast

The Company will host a conference call and audio webcast on Thursday, February 16, 2023 at 10:00 a.m. Eastern Time (ET), during which management will discuss the fourth quarter results and provide commentary on business performance. A question and answer session with analysts and investors will follow the prepared remarks.

The conference call can be accessed by dialing 877-407-0789 (domestic) or 201-689-8562 (international). An audio replay of the conference call will be available from 2:00 p.m. ET on February 16, 2023 through February 23, 2023 and can be accessed by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 13735166.

A live audio webcast of the conference call will be available through the “Investors” section of the Company’s website, www.pgre.com. A replay of the webcast will be archived on the Company’s website.

About Paramount Group, Inc.

Headquartered in New York City, Paramount Group, Inc. is a fully-integrated real estate investment trust that owns, operates, manages, acquires and redevelops high-quality, Class A office properties located in select central business district submarkets of New York City and San Francisco. Paramount is focused on maximizing the value of its portfolio by leveraging the sought-after locations of its assets and its proven property management capabilities to attract and retain high-quality tenants.

Paramount Group, Inc.
Consolidated Balance Sheets
(Unaudited and in thousands)
Assets:		December 31, 2022				December 31, 2021
Real estate, at cost:
Land		$	1,966,237			$	1,966,237
Buildings and improvements			6,177,540				6,061,824
			8,143,777				8,028,061
Accumulated depreciation and amortization			(1,297,553	)			(1,112,977	)
Real estate, net			6,846,224				6,915,084
Cash and cash equivalents			408,905				524,900
Restricted cash			40,912				4,766
Accounts and other receivables			23,866				15,582
Real estate related fund investments			105,369				-
Investments in unconsolidated real estate related funds			3,411				11,421
Investments in unconsolidated joint ventures			393,503				408,096
Deferred rent receivable			346,338				332,735
Deferred charges, net			120,685				122,177
Intangible assets, net			90,381				119,413
Other assets			73,660				40,388
Total assets		$	8,453,254			$	8,494,562
Liabilities:
Notes and mortgages payable, net		$	3,840,318			$	3,835,620
Revolving credit facility			-				-
Accounts payable and accrued expenses			123,176				116,192
Dividends and distributions payable			18,026				16,895
Intangible liabilities, net			36,193				45,328
Other liabilities			24,775				25,495
Total liabilities			4,042,488				4,039,530
Equity:
Paramount Group, Inc. equity			3,592,291				3,588,163
Noncontrolling interests in:
Consolidated joint ventures			402,118				428,833
Consolidated real estate related funds			173,375				81,925
Operating Partnership			242,982				356,111
Total equity			4,410,766				4,455,032
Total liabilities and equity		$	8,453,254			$	8,494,562

Paramount Group, Inc.
Consolidated Statements of Income
(Unaudited and in thousands, except share and per share amounts)
		For the Three Months Ended								For the Year Ended
		December 31,								December 31,
		2022				2021				2022				2021
Revenues:
Rental revenue		$	176,404			$	171,793			$	702,819			$	690,418
Fee and other income			7,624				12,427				37,558				36,368
Total revenues			184,028				184,220				740,377				726,786
Expenses:
Operating			70,102				67,617				277,422				265,438
Depreciation and amortization			61,211				56,735				232,517				232,487
General and administrative			13,986				13,093				59,487				59,132
Transaction related costs			89				413				470				916
Total expenses			145,388				137,858				569,896				557,973
Other income (expense):
Loss from real estate related fund investments			(2,233	)			-				(2,233	)			-
(Loss) income from unconsolidated real estate related funds			(1,864	)			178				(1,239	)			782
Loss from unconsolidated joint ventures			(37,925	)			(4,086	)			(53,251	)			(24,896	)
Interest and other income, net			2,567				507				5,174				3,017
Interest and debt expense			(37,060	)			(36,095	)			(143,864	)			(142,014	)
(Loss) income before income taxes			(37,875	)			6,866				(24,932	)			5,702
Income tax expense			(1,706	)			(1,195	)			(3,265	)			(3,643	)
Net (loss) income			(39,581	)			5,671				(28,197	)			2,059
Less net (income) loss attributable to noncontrolling interests in:
Consolidated joint ventures			(1,598	)			(4,614	)			(13,981	)			(21,538	)
Consolidated real estate related funds			665				286				3,342				(2,893	)
Operating Partnership			2,637				(121	)			2,433				2,018
Net (loss) income attributable to common stockholders		$	(37,877	)		$	1,222			$	(36,403	)		$	(20,354	)
Per Share:
Basic		$	(0.17	)		$	0.01			$	(0.16	)		$	(0.09	)
Diluted		$	(0.17	)		$	0.01			$	(0.16	)		$	(0.09	)
Weighted average common shares outstanding:
Basic			218,583,895				218,735,532				221,309,938				218,701,249
Diluted			218,583,895				218,797,844				221,309,938				218,701,249

Paramount Group, Inc.
Reconciliation of Net (Loss) Income to FFO and Core FFO
(Unaudited and in thousands, except share and per share amounts)
		For the Three Months Ended								For the Year Ended
		December 31,								December 31,
		2022				2021				2022				2021
Reconciliation of Net (Loss) Income to FFO and Core FFO:
Net (loss) income		$	(39,581	)		$	5,671			$	(28,197	)		$	2,059
Real estate depreciation and amortization (including our share of unconsolidated joint ventures)			70,720				66,902				271,789				274,024
Our share of a real estate impairment loss of an unconsolidated joint venture			31,685				-				31,685				-
FFO			62,824				72,573				275,277				276,083
Less FFO attributable to noncontrolling interests in:
Consolidated joint ventures			(11,565	)			(14,187	)			(51,433	)			(61,609	)
Consolidated real estate related funds			659				279				3,318				(2,904	)
FFO attributable to Paramount Group Operating Partnership			51,918				58,665				227,162				211,570
Less FFO attributable to noncontrolling interests in Operating Partnership			(3,380	)			(5,302	)			(17,063	)			(19,072	)
FFO attributable to common stockholders		$	48,538			$	53,363			$	210,099			$	192,498
Per diluted share		$	0.22			$	0.24			$	0.95			$	0.88
FFO		$	62,824			$	72,573			$	275,277			$	276,083
Non-core items:
Realized and unrealized losses (gains) from unconsolidated real estate related funds			2,851				(37	)			2,890				(108	)
Loss recognized upon consolidation of real estate related fund investments that were previously unconsolidated			2,627				-				2,627				-
FFO attributable to One Steuart Lane, including after-tax net gain on sale of residential condominium units			1,387				391				4,670				(2,876	)
Adjustment to equity in earnings for contributions to (distributions from) unconsolidated joint ventures			561				(961	)			855				8,016
Non-cash write-off of deferred financing costs			-				-				-				761
Other, net			89				413				470				916
Core FFO			70,339				72,379				286,789				282,792
Less Core FFO attributable to noncontrolling interests in:
Consolidated joint ventures			(11,565	)			(14,187	)			(51,433	)			(61,609	)
Consolidated real estate related funds			(625	)			(140	)			(1,006	)			(205	)
Core FFO attributable to Paramount Group Operating Partnership			58,149				58,052				234,350				220,978
Less Core FFO attributable to noncontrolling interests in Operating Partnership			(3,785	)			(5,246	)			(17,526	)			(19,923	)
Core FFO attributable to common stockholders		$	54,364			$	52,806			$	216,824			$	201,055
Per diluted share		$	0.25			$	0.24			$	0.98			$	0.92
Reconciliation of weighted average shares outstanding:
Weighted average shares outstanding			218,583,895				218,735,532				221,309,938				218,701,249
Effect of dilutive securities			59,378				62,312				31,487				45,709
Denominator for FFO and Core FFO per diluted share			218,643,273				218,797,844				221,341,425				218,746,958

Paramount Group, Inc.
Reconciliation of Net (Loss) Income to Same Store NOI and Same Store Cash NOI
(Unaudited and in thousands)
	For the Three Months Ended								For the Year Ended
	December 31,								December 31,
	2022				2021				2022				2021
Reconciliation of Net (Loss) Income to Same Store NOI and Same Store Cash NOI:
Net (loss) income	$	(39,581	)		$	5,671			$	(28,197	)		$	2,059
Add (subtract) adjustments to arrive at NOI and Cash NOI:
Depreciation and amortization		61,211				56,735				232,517				232,487
General and administrative		13,986				13,093				59,487				59,132
Interest and debt expense		37,060				36,095				143,864				142,014
Income tax expense		1,706				1,195				3,265				3,643
Loss from real estate related fund investments		2,233				-				2,233				-
NOI from unconsolidated joint ventures (excluding One Steuart Lane)		10,782				11,087				45,141				43,597
Loss from unconsolidated joint ventures		37,925				4,086				53,251				24,896
Fee income		(5,327	)			(9,041	)			(28,421	)			(28,473	)
Interest and other income, net		(2,567	)			(507	)			(5,174	)			(3,017	)
Other, net		1,953				235				1,709				134
NOI		119,381				118,649				479,675				476,472
Less NOI attributable to noncontrolling interests in:
Consolidated joint ventures		(19,247	)			(22,123	)			(82,587	)			(92,890	)
Consolidated real estate related funds		-				-				-				206
PGRE's share of NOI		100,134				96,526				397,088				383,788
Acquisitions / Redevelopment		(87	)			(688	)			(453	)			(1,612	)
Lease termination income		-				-				(1,875	)			(1,745	)
Other, net		1,156				1,625				7,626				6,311
PGRE's share of Same Store NOI	$	101,203			$	97,463			$	402,386			$	386,742
NOI	$	119,381			$	118,649			$	479,675			$	476,472
Less:
Straight-line rent adjustments (including our share of unconsolidated joint ventures)		(5,746	)			4,817				(14,034	)			(4,983	)
Amortization of above and below-market leases, net (including our share of unconsolidated joint ventures)		(1,984	)			(1,617	)			(5,099	)			(6,704	)
Cash NOI		111,651				121,849				460,542				464,785
Less Cash NOI attributable to noncontrolling interests in:
Consolidated joint ventures		(16,147	)			(23,518	)			(77,341	)			(87,831	)
Consolidated real estate related funds		-				-				-				206
PGRE's share of Cash NOI		95,504				98,331				383,201				377,160
Acquisitions / Redevelopment		(100	)			(856	)			(496	)			(2,004	)
Lease termination income		-				-				(1,875	)			(1,745	)
Other, net		1,148				1,635				5,253				6,142
PGRE's share of Same Store Cash NOI	$	96,552			$	99,110			$	386,083			$	379,553

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230215005807/en/

Wilbur Paes

Chief Operating Officer,

Chief Financial Officer and Treasurer

212-237-3122

ir@pgre.com

Tom Hennessy

Vice President, Investor Relations and

Business Development

212-237-3138

ir@pgre.com

Media:

212-492-2285

pr@pgre.com

Source: Paramount Group, Inc.

FAQ

What were Paramount Group's financial results for Q4 2022?

Paramount reported a net loss of $37.9 million, or $0.17 per diluted share, in Q4 2022.

How did Paramount Group's Core FFO perform in Q4 2022?

Core FFO for Q4 2022 reached $54.4 million, or $0.25 per diluted share, an increase from $52.8 million in Q4 2021.

What is the guidance for Core FFO for Paramount Group in 2023?

Paramount expects its 2023 Core FFO to be between $0.88 and $0.94 per diluted share.

What contributed to the net loss for Paramount Group in 2022?

The net loss included a $29.6 million real estate impairment loss from an unconsolidated joint venture.

What was Paramount Group's Same Store Cash NOI trend in Q4 2022?

Same Store Cash NOI decreased by 2.6% in Q4 2022 compared to Q4 2021.